NEW-Miami Occupier and Pricing Trends_C&W Q3 2023 RFS

AIRPORT WEST DIRECT VACANCY (%) 2013 - Q3 2023

AIRPORT WEST

SF

25.0%

20.0%

SUPPLY HIGHLIGHTS Overall vacancy rose by 170 bps to 20.2% YOY, recording the highest vacancy for all suburban submarkets and the second highest throughout the county. The Airport West submarket has not recorded any new deliveries since Q3 2021 and there have been no active projects underway for over two years. The office sector’s market corrections experienced in 2021 have eased in 2023 with a more balanced approach between supply and demand with only -17,000 sf of negative net absorption occurring YTD.

15.0%

10.0%

5.0%

0.0%

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

OFFICE MARKET STATISTICS | Q3 2023

Class A

Class B

Class A

Class B

YTD Completions

Under Construction

Existing Inventory SF

Direct Vacancy %

Total Vacancy %

YTD Net Absorption

Average Direct RR PSF Quoted

AIRPORT WEST TOTAL NET ABSORPTION, 2013 - Q3 2023

SF

Airport West Class A

0

0

5,535,407

18.1%

19.0% -32,515

$40.71

(500,000) (400,000) (300,000) (200,000) (100,000) 0 100,000 200,000 300,000

Airport West Class B

0

0

4,125,485

21.6%

21.8% 14,648

$36.19

Totals

0

0

9,660,892

19.6% 20.2% -17,867

$38.57

DEMAND HIGHLIGHTS The submarket continued to record steady deal activity throughout the year with over 442,000 sf of new leases signed YTD, of which 29.3% occurred during Q3. Notably, leasing activity was down just over 20.0% from the volume seen through the close of Q3 one year ago. Two noteworthy move-outs included Oracle’s giving back of over 27,000 sf at 6505 Waterford along with Banyan Health returning 12,500 sf at 6100 Waterford. The only keynote occupation for Q3 was Parkland USA’s move-in of 17,000 sf at Flagler Station 1300. The remainder of move-ins were below the 5,000 sf mark. PRICING HIGHLIGHTS Despite economic headwinds, direct average asking rates continued to tick upward at a modest rate, increasing 3.9% YOY to $38.58 psf. The Airport West office sector was one of two key submarkets in Miami to record a more moderate increase in asking rents over the past 12 months. Class A assets increased by 6.4% YOY, marking a record high rate for the submarket at $40.72 psf.

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Class A

Class B

Class A

Class B

AIRPORT WEST AVERAGE DIRECT RENTAL RATES, 2013 - Q3 2023

Quoted Rate PSF

$10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00

$0.00 $5.00

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Class A

Class B

Class A Class B

Cushman & Wakefield of Florida, LLC. / 23